New Mountain Capital has rejected a bid by former executive Matt Holt to acquire five health tech assets worth over $30 billion. The New York-based firm informed limited partners last week that it would not proceed with Holt's proposal to move the assets into a new entity called Thoreau. Holt, who previously served as managing director and president of private equity at New Mountain, had pitched the deal as a way to unlock value from the portfolio.

Sources indicate that governance concerns and structural issues derailed the transaction, including disagreements over debt positioning and control rights. The process, which began last December, attracted attention from secondaries firms like Lexington Partners and CPP Investments as it progressed. Bloomberg had previously reported that ICG's Strategic Equity unit was prepared to back Holt's plans.

With the deal dead and Holt departed, New Mountain says it remains committed to the five assets and sees "significant upside" in their future. The firm has generated approximately $24 billion in gross cash distributions over the past five years and maintains its DPI has been "excellent and consistent." The collapse of this transaction highlights growing scrutiny around GP-led deals and distributions to limited partners in the private equity industry.